Kenya Alerts:
EQUITY BANK closes seven branches in war-torn South Sudan over hyperinflation, battered local currency and economic slowdown.
Things are not rosy in that Country.
There are some people that can never be helped
KCB will close 12.
Repercussions of war
Yes. But even if there was no war, South Sudan would still have faced hyperinflation though not severe. See Venezuela
It ain’t nothing new, the rosiness disappeared when the fresh bout of fighting broke out in 2012.
But I always thought war is good for business :(.
A good case of Mwaga ugali nimwage mboga… A good learning point.
Neither Kiir nor Machar is better off
It was in 2013. Dec 15
War is only good for the mercenaries and arms dealers …and not for Wanjiku or regular businesses.
Equity is not a regular business mate, they can easily finance, by say offering loans to the mercenaries in purchase of the mentioned arms with longterm goal of earning from the interest gained. Sounds viable? Conversely, they can bail the government from the pinching inflation by buying treasury bonds thereby actually owning south Sudan economy in the coming years. Maybe they didn’t have enough capital to do either or they lacked the vision to do so.
Ever heard of buy at the sound of cannons and sell at the sound of trumpets? Equity could buy those bonds now at a throw away price, give the country economic stability and sound money supply thereby helping everyone even the wanjikus, but with the goal of cashing out massively when everything returns to normal
That is a far fetched vision. Arms financing? SS treasury bonds? Do they even have a credit rating?
Well that’s the point, get it while its cheap. But you do realize this is not just fugazi, what I mentioned happens, even to the greatest economies of modern time…read the economic impact of england and French Napoleonic war. England was bought off.
@Okiya ebu kuja kidogo… I dont think they can finance war within the legal framework… governments do that… US, UK, China…
You are wrong buda. Who buys government bonds in a period of inflation? FYI, when there is inflation, people prefer to hold physical goods. Not cash. Not bonds or treasury bills. Not loans
South Sudan should just become a Kenyan protectorate.
Am arguing from a hypothetical position where I think its all about taking risks and ability to absorb cost mistakes, equity can do both. Assuming no one can purchase during inflation just kills the whole argument and makes you rather bland
Nop pokots are enough .we don’t need taller pokots
Yours is hypothetical argument, mine is a factual argument. Nobody prefers to keep liquid assets in a place there is hyperinflation. In fact barter trade thrives because the value of the goods increases in the same direction as inflation. That’s why in Zimbabwe people pay school fees using goats and cows. Nobody accepts Zimbabwe dollar there. Presently the south Sudan government is giving treasury bills at the rate of 20%. The annual inflation rate is 350%. Would you invest? You say Equity should give out loans to customers. At what rate should they give out the loans 370%?.